May 16, 2018 / 3:23 AM / 10 months ago

GRAINS-Wheat up for 2nd day on support from U.S., Australian weather

    * Dry weather in Australia, U.S. supports Chicago wheat 
    * Corn unmoved after rally, rains seen delaying planting

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, May 16 (Reuters) - Chicago wheat futures rose for
a second session on Wednesday with prices underpinned by dry
weather in key exporters the United States and Australia.
    Corn futures were little changed after hitting a six-day
high earlier in the session as forecasts for rains stoked
concerns of planting delays.
    The most-active wheat contract on the Chicago Board Of Trade
 gained 0.2 percent to $4.94-1/2 per bushel while soybeans
 were down 0.6 percent to $10.12-3/4 a bushel.
    Corn was unchanged at $4.02-1/4 a bushel, near the
session high of $4.03-1/4, the highest since May 10. Corn gained
1.5 percent in the previous session.
    "Chicago wheat is undervalued right now, when you look at
the global supply outlook," said Ole Houe, an analyst with
brokerage IKON Commodities in Sydney. "We have issues with crops
in the United States and Australia."
    Australian farmers are planting wheat in some of the driest
soils in years, following on from a severe drought that cut
2017/18 output in the world's fourth-largest exporter to the
lowest in a decade.
    U.S. hard red winter wheat crop has suffered from dry
weather although the U.S. Department of Agriculture on Monday
said the crop was rated 36 percent good to excellent as of May
14, up 2 percentage points from a week earlier.
    The corn market is expected to receive support if forecast
rains delay the last leg of planting in the U.S. Midwest.
    The USDA pegged corn planting progress at 62 percent, up
from 39 percent a week earlier. The five-year average for
mid-May is 63 percent.
    The U.S. soybean crush in April jumped by almost 16 percent
from the same month a year ago as soybean plants processed their
largest-ever volume of beans for the month of April, the
National Oilseed Processors Association said.
    Commodity funds were net buyers of CBOT corn and wheat
contracts on Tuesday, traders said. They were net sellers of
soybeans, soymeal and soyoil.
 Grains prices at 0304 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  494.50   1.00     +0.20%   -0.85%       498.20   45
 CBOT corn   402.25   0.00     +0.00%   +1.45%       397.43   67
 CBOT soy    1012.75  -6.00    -0.59%   +0.95%       1040.79  46
 CBOT rice   12.51    $0.03    +0.20%   -1.15%       $12.99   50
 WTI crude   71.09    -$0.22   -0.31%   +0.18%       $68.09   65
 Euro/dlr    $1.183   -$0.011  -0.95%   -0.71%                
 USD/AUD     0.7468   -0.007   -0.98%   -0.85%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Gopakumar Warrier)
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